Albertsons Companies (ACI) AI Stock Analysis

• Market Cap: $9.83B
• Dividend Yield: 3.25%
• Average Volume (3M): 5.56M
• Price to Earnings (P/E): 10.7
• Beta (1Y): 0.04
• Revenue Growth: 1.96%
• EPS Growth: -14.99%
• Country: US
• Employees: 108,300
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Grocery Stores
• EPS (TTM): 0.55
• Shares Outstanding: 559,846,440
• 10 Day Avg. Volume: 6,322,112
• 30 Day Avg. Volume: 5,555,457
• PEG Ratio: -0.47
• Price to Book (P/B): 3.52
• Price to Sales (P/S): 0.15
• P/FCF Ratio: 15.91
• Enterprise Value/Market Cap: 2.68
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 1.18
• Enterprise Value/Ebitda: 6.77
• 1Y Price Target: $24.08
• Price Target Upside: 37.13% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 14

• Rating: 60 Neutral
• Price Target: $19.00 ▲(8.20% Upside)

Albertsons' overall stock score reflects a balance of steady financial performance and attractive valuation against technical weaknesses and mixed earnings call sentiment. The company's strong revenue growth and cash generation are offset by high leverage and profitability challenges. Technical indicators suggest bearish momentum, while the valuation remains appealing due to a low P/E ratio and solid dividend yield.

Positive Factors

E-commerce Growth

The substantial growth in e-commerce and loyalty programs indicates a strong digital strategy, enhancing customer engagement and expanding market reach.

Pharmacy and Health Segment Growth

Robust growth in the pharmacy segment underscores the company's ability to capitalize on health trends, diversifying revenue streams and strengthening market position.

Investment in Technology

Investments in AI and automation are likely to enhance operational efficiency and productivity, providing a competitive edge in the evolving retail landscape.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Decline in Gross Margin

A declining gross margin suggests rising costs and pricing pressures, which could affect profitability and require strategic adjustments to maintain margins.

Challenges in E-commerce Profitability

Despite growth, the e-commerce segment's lack of profitability highlights challenges in cost management and achieving sustainable margins in the digital space.

Albertsons Companies Business Overview & Revenue Model

Company Description

Albertsons Companies, Inc., through its subsidiaries, engages in the operation of food and drug stores in the United States. The company's food and drug retail stores offer grocery products, general merchandise, health and beauty care products, pharmacy, fuel, and other items and services. It also manufactures and processes food products for sale in stores. As of February 26, 2022, it operated 2,276 stores under various banners, including Albertsons, Safeway, Vons, Pavilions, Randalls, Tom Thumb, Carrs, Jewel-Osco, Acme, Shaw's, Star Market, United Supermarkets, Market Street, Haggen, Kings Food Markets, and Balducci's Food Lovers Market; and 1,722 pharmacies, 1,317 in-store branded coffee shops, 402 adjacent fuel centers, 22 distribution centers, and 20 manufacturing facilities, as well as various digital platforms. The company was founded in 1860 and is headquartered in Boise, Idaho.

How the Company Makes Money

Albertsons Companies generates revenue primarily through the sale of grocery and pharmacy products in its stores. The company's revenue model is driven by several key streams: first, the retail sale of food and non-food items, which constitutes the majority of its revenue; second, pharmacy sales, including prescription medications and health-related products; and third, fuel sales from its gas stations. Additionally, Albertsons benefits from loyalty programs and private label products, which enhance customer retention and margins. Strategic partnerships with suppliers and manufacturers also contribute to its earnings by allowing for promotional activities and cost efficiencies. Furthermore, the company's investment in e-commerce and delivery services has expanded its customer base and increased sales, particularly during the pandemic and in the growing online grocery market.

Albertsons Companies Financial Statement Overview

Summary

Albertsons demonstrates steady revenue growth and sound cash generation capabilities despite facing profitability challenges. The balance sheet reflects high leverage but shows signs of stabilization. Continued focus on improving operational efficiency and managing debt levels will be crucial for sustaining growth and enhancing shareholder value.

Income Statement

Albertsons shows a stable revenue growth with recent TTM revenue at $81.01 billion compared to $80.39 billion in the previous year, indicating a modest growth trajectory. However, net income has slightly declined, resulting in a net profit margin decrease. The gross profit margin remains healthy, but the decline in EBIT and EBITDA margins suggests rising operational costs affecting profitability.

Balance Sheet

The company maintains a high debt-to-equity ratio, reflecting significant leverage at a level typical for the grocery industry. Despite this, the equity ratio shows slight improvement, indicating some strengthening of financial stability. Return on equity has decreased due to lower net income, signaling challenges in generating returns for shareholders.

Cash Flow

Albertsons maintains a positive free cash flow, though it has decreased compared to previous periods. The operating cash flow to net income ratio signifies efficient cash generation relative to net income. However, the declining free cash flow growth rate suggests potential pressures on future cash availability for investments and debt servicing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	81.01B	80.39B	79.24B	77.65B	71.89B	69.69B
Gross Profit	22.25B	22.26B	22.05B	21.76B	20.72B	20.41B
EBITDA	3.89B	4.08B	4.53B	4.85B	4.87B	3.78B
Net Income	954.30M	958.60M	1.30B	1.51B	1.62B	850.20M
Balance Sheet
Total Assets	26.47B	29.31B	28.79B	28.75B	30.77B	29.39B
Cash, Cash Equivalents and Short-Term Investments	151.00M	339.20M	212.00M	477.20M	2.97B	1.78B
Total Debt	14.31B	14.18B	14.24B	15.01B	15.30B	16.07B
Total Liabilities	23.25B	25.92B	26.05B	27.14B	27.75B	28.06B
Stockholders Equity	3.22B	3.39B	2.75B	1.61B	3.02B	1.32B
Cash Flow
Free Cash Flow	501.30M	749.40M	628.20M	700.00M	1.91B	2.27B
Operating Cash Flow	2.47B	2.68B	2.66B	2.85B	3.51B	3.90B
Investing Cash Flow	-1.83B	-1.89B	-1.75B	-1.98B	-1.54B	-1.57B
Financing Cash Flow	-786.20M	-684.10M	-1.18B	-3.37B	-789.50M	-1.04B

Albertsons Companies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ACI, the sentiment is Negative. The current price of 17.56 is below the 20-day moving average (MA) of 18.48, below the 50-day MA of 19.16, and below the 200-day MA of 20.38, indicating a bearish trend. The MACD of -0.51 indicates Positive momentum. The RSI at 29.35 is Positive, neither overbought nor oversold. The STOCH value of 13.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ACI.

Albertsons Companies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WMK	69 Neutral	$1.80B	18.13	8.07%	1.87%	2.49%	15.99%
SFM	67 Neutral	$10.74B	22.64	28.79%	―	16.83%	52.71%
KR	65 Neutral	$43.38B	16.57	29.38%	2.00%	-2.13%	3.22%
ACI	60 Neutral	$9.83B	10.71	31.10%	3.25%	1.96%	-14.99%
GO	58 Neutral	$1.55B	199.75	0.69%	―	8.47%	-85.17%
IMKTA	52 Neutral	$1.28B	23.14	3.54%	0.96%	-7.96%	-64.67%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%

Albertsons Companies Corporate Events

Albertsons Companies Holds Annual Stockholders Meeting

On August 7, 2025, Albertsons Companies held its annual meeting of stockholders where several key proposals were voted on. Directors were elected for the upcoming year, Deloitte & Touche LLP was ratified as the independent accounting firm, and executive compensation was approved. However, stockholder proposals on food waste reporting, human rights policy, and reproductive health care risks were not approved, indicating a focus on traditional business operations over expanded social responsibility reporting.

The most recent analyst rating on (ACI) stock is a Buy with a $27.00 price target. To see the full list of analyst forecasts on Albertsons Companies stock, see the ACI Stock Forecast page.